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April 4, 2014

Kitces, Moore Launch XY Planning Network

Network dedicated to helping young planners build a fee-only business targeting Gen X and Y clients

Members of the XY Planning Network, which Kitces told ThinkAdvisor now includes 20 founding members, will offer fee-only financial planning services on an “affordable” monthly retainer, and may choose to offer investment management services but without what Moore and Kitces call “cumbersome asset minimums.”

Members “must offer monthly retainers and be willing to work with clients virtually,” Kitces said.

The network is in “soft launch” for founding member sign-ups starting Friday and going through the end of May, Kitces told ThinkAdvisor in an email message.

On June 1, the founding members will begin to receive full access and benefits to the services XY Planning is providing, particularly regarding some of the technology tools, he said. “Between now and then we’ll be going through the onboarding process for founding members, and preparing for a launch of the consumer side of the platform that will include an Advisor Search tool for consumers to find an XY Planning Network member to work with.”

Co-founder Moore added in a release announcing the launch that when he started his financial planning firm, Serenity Financial Consulting, in 2012, “there were simply no resources that I could find to help me start and run my practice.”

The XY Planning network, Moore said, “will serve as that resource for younger advisors starting today, providing everything a new firm needs to start, run and grow the business” by providing members with access to a turnkey solution, including compliance and marketing support, discounted access to key technology packages, and relevant education to advisors and their ideal clients.

Moore added that supporting the younger generation is “critical, as millennials represent the largest generation in history — less than 3% of CFP professionals are under the age of 30, and only 21% are under the age of 40.”

The XY Planning Network “is the first organization to connect consumers with a fee-only advisor providing comprehensive financial planning that has an accessible and affordable fee model.”

Indeed, Kitces told ThinkAdvisor that most in the Gen X and Gen Y generation “certainly aren’t going to meet someone’s asset management minimums; they live on cash flow and live from month to month, so we’re trying to meet people where they are.”

Kitces added that he’s “always found that most financial advisors work with clients within 10 years of their own age” who are within their “interest group.”

Kitces added that while “much has been done with the hourly financial planning model to bring advice to the masses, it is still fundamentally a transactional model, where advice is purchased one hour at a time.”

The monthly model, he continued, “can open the door for a viable business providing a continuous, ongoing financial planning relationship, in a manner similar to the AUM model but without the asset minimums that are simply inaccessible to the majority of Gen X and Y consumers.”

The XY Planning Network has partnered with “best-in-class coaches,” such as niche marketing expert Kristin Harad and compliance expert Jim Cullen of Financial Planners Assistance, according to the release.

Members who have the CFP certification and sign a “fiduciary oath” that they will always serve in the best interest of their clients will also have access to XY Planning Network’s exclusive “Find an Advisor” search profile, which helps connect Gen X and Y consumers with advisors that specialize in their unique situation.

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